New York– U.S. Treasury Secretary Scott Bessent said on Monday that India is likely to be among the first countries to finalize a trade agreement with the United States as President Donald Trump accelerates efforts to realign global economic relations under the threat of new tariffs.
Speaking to CNBC, Bessent said, “Vice President [JD] Vance was in India last week and discussed substantial progress. I would guess that India would be one of the first trade deals we would sign.” He later told reporters that an initial agreement could be reached as early as next week.
Realigning trade relations has been a central theme of Trump’s presidency, and as he approaches his 100th day back in office, negotiations have been slow across the board. Securing a deal with India, the world’s fifth-largest economy, would mark a major achievement.
Bessent outlined why an agreement with India could come together relatively quickly: “India has fewer non-tariff trade barriers, no currency manipulation, and very little in terms of government subsidies, so reaching a deal with them is much easier.”
During his recent visit to India, Vice President Vance discussed trade issues with Prime Minister Narendra Modi. Both sides agreed on a roadmap for formal negotiations. “We’re especially excited to formally announce that America and India have officially finalized the terms of reference for the trade negotiations,” Vance said. “This is a vital step toward realizing President Trump and Prime Minister Modi’s shared vision. I believe there is much America and India can accomplish together.”
Without a bilateral agreement, India faces a 26 percent tariff under Trump’s new reciprocal tariff policy set to take effect in July.
Bessent also provided updates on other trade discussions. He noted that negotiations with South Korea “have gone very well,” although South Korean officials have indicated that a final agreement is unlikely before the country’s June 3 presidential election. Talks with Japan, which had initially shown promise when Trump joined discussions earlier this month, have since stalled.
Regarding China, Bessent said the onus is on Beijing to de-escalate tensions. “They sell five times more to us than we sell to them, so these 125% tariffs are unsustainable,” he said. He added that China’s move to exempt some U.S. products from steep tariffs was a sign that Beijing is looking to ease tensions. (Source: IANS)
